for Racial Quotas
This report examines one of the federal governments most powerful and least
publicized mechanisms for enforcement of racial quotas and minority contract set-asides.
The U.S. Department of Transportation annually spreads billions upon billions of
dollars in federal highway and transportation money (YOUR tax money) to state and local
jurisdictions who are forced to submit to DOTs federally imposed racial quotas.
On Jan. 29, 1999 the White House announced a new, more aggressive DOT
Minority Set-Aside program! For the complete text of Clinton's press release, see
also Clinton Steps Up DOT Racial Goals, Jan. 29, 1999.
See also DOT Secretary Slater Parrots Clinton Racial Goals.
According to DOTs web site "DOT obligates more than $3 billion dollars annually
(thats $3,000,000,000!) to acquire goods and services under contract, and funds
approximately $25 billion (thats $25,000,000,000!) in grants and cooperative
agreements." Non-minority businesses are excluded from a significant
percentage of these contract dollars because of their skin color.
In 1996, federal contracts for goods and services supplied to DOT's Washington operating
administrations alone totalled $1,837,800,000. Of this amount, white, male-owned
businesses were specifically prohibited from participating in $521,300,000 (over
1/2 billion dollars, 28.4% of the total)! The breakdown of these race- and
gender-based set-asides is as follows:
DOT Federal Services Contract Dollars (in millions):
for Minority Businesses - SBA Section 8(a):
- Small and Disadvantaged Business Set-Asides (prime contracts):
- Small and Disadvantaged Business Set-Asides (sub-contracts):
- Women Owned Business Set-Asides (prime contracts):
Women Owned Business Set-Asides (sub-contracts):
All Race and Gender Set-Asides:
The DOT OSDBU (Office of Small and Disadvantaged Business Utilization) boasts proudly
about these figures as an accomplishment, rather than a discriminatory disgrace of which
they should be ashamed. See also: Federal Statistics for the racial/gender
set-asides for all federal agencies.)
The DOT is truly a mammoth federal agency, which includes the following operating
|Federal Aviation Administration
Federal Highway Administration
Federal Railroad Administration
Federal Transit Administration
National Highway Traffic Safety Administration
United States Coast Guard
Research and Special Programs Administration
Volpe National Transportation System Center
Transportation Administration Service Center
Each of these administrations has their own, extensive minority set-aside offices and
programs. To visit links to these various DOT administrations, click the right-arrow
DOTs reach and influence into every state, county and city in the U.S. is pervasive
and extraordinary. Under threat of losing their federal DOT matching funds, every state in
the union and every local jurisdiction submits to DOTs "Minority Set
Aside" program. Every locale has numerous programs under titles such as
"Minority Business Enterprise: Transportation Contracting" or
"Disadvantaged Business Contracting Program".
The old adage says: "Wherever the federal dollar goes, federal control follows
For the moment, try to forget that federal dollars are really your tax dollars!
Every time you buy an airline ticket, a train ticket, pay taxes at the gas pump, or ride
any form of mass transit, your dollars go to DOT's enforcement of racial quotas.
Everybody needs roads, buses, subways, trains, and airports! The total size of DOTs
many federal, state and local racial-quota programs is staggering, complex, and because of
this intentional complexity these programs are effectively hidden from public view.
Non-minority contracting businesses (white-owned businesses) are excluded from billions of
dollars in DOT contract opportunities, at the federal, state and local levels. It is
a simple, effective vote-buying machine.
Thus, DOT has become THE pork-barrel agency of the 90s for the blatant purchase of
support for Clintons race-based federal contracting policies.
See particularly DOTs web page on "SMALL, MINORITY AND WOMEN-OWNED
BUSINESSES" (Link: http://www.dot.gov/ost/docr/SMALL.HTM
You can also review DOTs propaganda web site "Office of Small and Disadvantaged
Business Utilization" at http://osdbuweb.dot.gov.
In this context, we suppose that it is not unseemly that U.S. DOT happens to lack an
office or a web page for "white guys who have been excluded from contracts which have
been set-aside for people of the right color"!
DOT PRESS RELEASE:
"THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590"
DISADVANTAGED BUSINESS ENTERPRISE PROGRAM"
by Federico Peņa, Secretary of U.S. Dept. Transportation
"President Clinton has made it a high priority of the Administration to bring more
economic opportunity to the disadvantaged business community [by discriminating against
non-minorities]. I fully support his concern [because my job depends on it], and
commit this Department's best efforts on behalf of minority and women entrepreneurship and
the goals and objectives of the Department's Small and Disadvantaged Business Enterprise
Peņas speech neglects to mention any DOT program for ensuring fair and equitable
treatment of DOT contractors on a color-blind basis -- because no such program exists!
INTERPRETATION: U.S. DOTs Transportation
Dollars are the grease of modern re-election politics. Did you ever notice that
during the year before an election the street crews are out there building new roads and
Thus, the DOT racial-quota and set-aside programs have an incredible impact on state and
local politics, and buy a phenomenal number of minority votes, i.e., the votes of minority
contractors and minority employees who know which side their bread is buttered on and who
are not about to vote against a job guarantee! (See Link: http://osdbuweb.dot.gov/business/dbe/index.html)
Of course, the racial quota starts at the very top, in the U.S. House of Representatives
at the House Transportation and Infrastructure Committee (Democratic Caucus, of course).
On May 22, 1998 this committee issued a press release in which they strongly supported the
Transportation Equity Act for the 21st Century (TEA-21), and which states in part:
"This bill will give our nation a strong and balanced transportation system which ...
protects the environment, enhances safety, and ensures fair treatment for construction and
transit workers, pedestrians, bicyclists, disadvantaged contractors (minorities)
and persons trying to end their dependence on welfare. ... The conference report
reauthorizes the Disadvantaged Business Enterprise (DBE) program, ensuring that
disadvantaged contractors will have the opportunity to bid on and participate in projects
funded by this legislation."
Missing from the House Democrats language was any mention of providing assistance to
white-owned transportation contractors.
See the transportation racial-quota committees press release at the following link: http://www.house.gov/transportation_democrats/press/980522.htm
Representatives Charles Canady and Marge Roukema, among others, strenuously objected to
the racial set-asides in the federal funding bill, and introduced amendments to prohibit
use of racial quotas in federal transportation contracting. Their amendmends were
not enacted, and the quotas continue.
U.S. DOTs insidious tentacles of racial quotas and preferences also infect the
nations banking system.
DOT has made an agreement with several banks around the country to fast track billions of
dollars in loans to minority businesses seeking operating capital for any state or federal
For example, Hamilton Bank in Miami boasts that they were selected as one of three U.S.
banks to lead the Short-Term Lending Program which is managed by the Office of Small and
Disadvantaged Business Utilization of the U.S. Department of Transportation. Since its
election, Hamilton Bank has generated numerous loans to minority contractors and
subcontractors who hold contracts from the various Federal, State and local Departments of
Transportation. (See Link at: http://www.hamiltonbank.com/minority.html
Spreading out DOTs racial quota carrot-and-stick program in this way makes it much
more difficult for the voting public to see how many billions of dollars in govt
contracts are set-aside for individuals and businesses of the correct race.
Federal Aviation Administration: As part of U.S. DOT, FAA is a separate
administration which maintains a huge minority set-aside program. For fiscal 1996 $549,820,000
in FAA contracts was reserved for minorities and women. The FAA's goals for 1998
include reserving up to 35% of procurement funds for minorities and women!
FAA Administrator David R. Hinson said:
"The FAA writes in its minority mission statement: "It is imperative that
the FAA, to the maximum extent possible, continue its best efforts in expanding
opportunities for these businesses to participate fully in FAA direct-funded
procurements. In addition, the FAA, where appropriate, will set procurements
aside for exclusive participation of small business concerns and those businesses
that are certified as being socially and economically disadvantaged. Initially, this
program will be limited to firms certified through the 8(a) program.
Furthermore, where appropriate, subcontracting opportunities are encouraged [i.e.,
contractors are required to hire the right number of minority and women
For additional detail about FAA's racial contracting goals and minority set-asides, view
the FAA detail page by clicking on the right-arrow icon.
State and Local DOT Programs: There are hundreds of state and local DOT
offices devoted to the enforcement of racial quotas and minority contracting set-asides.
Adversity.Net has reviewed a dozen or so State DOT programs in some detail. For our
review of selected State DOT programs, click this right-arrow icon.
For a complete listing of State DOT web sites, with an emphasis on procurement and
minority programs, click this right-arrow icon. You could spend many hours browsing
these sites and have your eyes opened by the billions of dollars DOT spends on racial
Be sure to also see: Utah DOT Prefers Higher Cost Minority and Women Contractors!
END of DOT Main Page: Special Report - Updated March 18, 2000